Posted To Steve Keen’s Substack Podcast 01/16/2023

An excellent refutation of another orthodoxy smearing the economic doors of perception and helping to clear the way toward perceiving the paradigm change necessary in the economy and the money system. Please consider the following short tutorial on perceiving and confirming genuine paradigm changes.

When you 1) observe a (Gallilean) temporal universe reality described by the new operant/paradigmatic (Copernican) concept (strategic COVID mandated direct distribution of Monetary Gifting) and

2) discover the (Keplerian) missing/most efficaciously problem resolving point in the economic process at which to apply it (a high percentage, say 50%, discount/rebate policy at retail sale) because it

 a) ends inflation by implementing beneficial price and asset deflation, thus rapidly closing the mouth of every austerian monetary economist and pundit

 b) immediately doubles everyone's purchasing power, 

 c) integrates the self interests of consumer and merchant by b above and by potentially doubling demand for every good and service

 d) beneficially effects everyone because it is the single macro-economic, aggregative, universally participated in point in the entire economic process, again, retail sale) and 

3) utilize the same method the Banks use to monopolistically create our money ONLY AS DEBT (equal accounting entries that sum to zero) to

4) finally make the money system serve the individual instead of enslaving 95% of humanity by systemically imposed ever increasing private indebtedness, then

5) it meets the standards for a genuine paradigm change. In fact it qualifies as a mega-paradigm change of which there has probably only been three confirmed universally effecting examples:

 a) the emergence of human self awareness which enabled mankind to begin to exit a zeitgeist of mere struggle for survival by making ethics a reality.

 b) the discovery and utilization of fire as a tool and

 c) the virtually universal change from nomadic hunting and gathering to agriculture, homesteading and urbanization

The tool of money does make the world go ’round. Now we must change its civilization-long dominating paradigm of Debt ONLY as the sole form and vehicle for the creation of new money in order to make it accomplish the common good and hopefully the better survival of the planet and every living thing on it.

You can find the evolving policy, taxation incentive and dis-incentive, and other regulatory program of the new paradigm here:


MMT has the SYSTEMIC OPERATION of money creation correct, but they have not yet recognized the problematic operant/paradigmatic/applied monetary concept of Debt Only, nor the new such applied concept of Direct and Reciprocal Monetary Gifting. MMT is an excellent reform that conceptually aligns with the new paradigm, but its at least one analytic level below paradigmatic i.e. single operant applied concept analysis…which beats hell out of mere reformist thinking because its a change in the nature/temporal reality of an entire pattern/system.

De-growth is certainly a viable alternative idea, but it shouldn’t and IMO needn’t be an arbitrary argument against the new monetary paradigm and its increase in purchasing power because

1) The abundance as well as increased psychological uplift of guaranteed economic security created by the new monetary paradigm would likely make any eventual consumptive drawback a lot more palatable than would such drawback without it and on top of the current pay check to pay check kind of austerity afflicting most of the general populace. In other words humans tend to make better, more rational decisions after they’ve been graciously treated than if they’ve been long and long forced into austerity…and then told they must endure even more of such shit.

2) a doubling of purchasing power doesn’t ipso facto translate into a doubling of consumption/economic throughput because not everyone is going to eat twice as much as they do now or like Emelda Marcos develope a fetish for shoes and buy twice as many as they currently have. I think you’d of course see a big uptick in consumption by the poor and unemployed, but rather soon you’d probably see what happens with excess income, namely a lot more saving and investment which if rationally and ecologically incentivized could actually contribute to consumptive sanity. And in the new monetary paradigm where inflation is macro-economically conquered and savings (supposedly, idiotically) no longer have negative economic effect, lets have more investment in innovative energy and conservation technologies.

3) Again, with inflation macro-economically resigned to the dust bin of history that leaves the door open to the fiscal funding of the kind of mega-projects necessary to confront and handle climate change like the under planeting and/or off planeting of at least the worst carbon emitting means of production. So no need to shrink from the size of the task.


The entire concept of free markets is not only a temporal delusion (just consult the tax code of any nation as well as whether or not any regulations that effectively direct finance are actually enforced), but it confuses the alternately goosed and strangled chaos of overweening financial domination with freedom.

In the human temporal universe there is actually only freedom amongst known and enforceable barriers…except in the economy that is. Its why you, the individual, can’t walk into a theatre and yell fire. A little thing called ethics. But in an economy dominated by Finance and its monetary paradigm of Debt Only as the sole form and vehicle for the creation and distribution of new money, dominating power, profit and control IS the ethic, or shall we say the anti-ethic.

Markets should be abundantly free flowing and serve the individual, not a fetish and delusion, and commercial agents could and would be granted many benefits they don’t have now…so long as they abided the natural philosophical concept behind the new monetary paradigm. In other words there would finally actually be abundant power, profit and reasonable control because the primary cause of out ethics would be replaced by known and enforceable barriers derived from a universally recognized superior ethic. So what is the natural philosophical concept behind Gifting? Ponder that one.


Yes, power is addictive and as Lord Acton said absolutely corrupting. The only business model that hasn’t innovated in some constructive way (their derivatives debacle in the GFC doesn’t count as constructive) is Finance. And think about it, Finance’s monetary paradigm of Debt Only as the sole form and vehicle for the creation and distribution of new money hasn’t changed for the entire course of human civilization no matter whether it was the Palace or the private banks that was in control.

We live and labor under Finance capitalism afterall. But rather than get into the ubiquitous (false) duality of capitalism vs socialism, which Finance is happy to see us expend all of our mental energies on, why not try finishing Hegel’s dialectic with a true synthesis, that ups our analytic game from mere reform and theoretics to the level of the operant applied concept/paradighmatic level which is the core of the core economic problem. As Dr. Keen correctly said: “Neo-classical macro ignores money, debt and banks”. I’d only add that its the monopolistic monetary paradigm of Debt Only wielded by the private banks that is what desparately needs changing…because it keeps our deepest economic problems in continual suspension and enables them to rise from the ashes of their own folly like in 2008.

We DO need to make competition and innovation not only alive but vibrant. Thats why in my book I suggest creating a new governmental department called The Department of Competition, Innovation, Boycotting and The Public’s Bully Pulpit where weekly press conferences would point the finger at CEO’s and corporations that try to game the new monetary paradigm, whose policies double everyone’s purchasing power, potentially doubles the available demand for every enterprise’s goods and service and ends price and asset inflation by of all things implementing beneficial deflation, and asks the question: Well Mr. John Q. Public, what are you going to do about these guys that are trying to undo the 100% increase in purchasing power the new paradigm just granted you, eh?


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